The restart of the heavy capital gains tax for multiple homeowners starting on the 10th has led to predictions of a “housing inventory lockdown” in well-known areas of Seoul and the surrounding metropolitan region. In reaction, Minister of Land, Infrastructure and Transport Kim Yun-duk addressed worries through social media (SNS), saying, “The government of popular sovereignty will be different.”
Minister Kim posted on his X account on the 10th, “There are numerous voices expressing worries about a housing inventory lockdown after the heavy tax is reinstated, but these predictions are mainly rooted in previous government experiences. In the long run, the popular sovereignty government will be different and needs to be different.” This was seen as an effort to ease market anxieties after the tax deferral policy for multiple homeowners ended the day before.
Minister Kim stated, “The Lee Jae Myung administration will thoroughly reform economic incentive systems—financial, tax, and supply—shifting from an economy dependent on real estate gains to a more productive economic model. As citizens have seen with the KOSPI reaching 7,000 and the response to Middle East war situations, our housing supply policies are distinct.” He added, “Intensive market stabilization efforts, such as stringent financial regulations and designated land transaction permit areas, are being carried out. Mortgage rates have also increased compared to the start of the year, which is anticipated to limit housing price growth.” According to him, both government policy approaches and macroeconomic factors are reducing the chances of rising home prices.
Minister Kim also suggested further real estate regulations. He said, “Before implementing fundamental institutional changes, we will assess exemptions for land transaction permits for non-resident single-homeowners from the viewpoint of fairness in selling opportunities. Furthermore, under the leadership of the Ministry of Finance and Economy, we will evaluate whether permanent capital gains tax cuts for rental business operators are suitable from the angle of tax fairness.” This implies that actions are being planned to promote apartment sales by non-resident single-homeowners and rental business operators, after policies aimed at multiple property owners.
In conclusion, Minister Kim stated, “We will consistently implement policies to establish a real estate market where genuine demand feels safe and a country where diligent citizens can discover optimism, by maintaining both immediate and future increases in supply.”
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